AT&T Pushes for More Growth, Spectrum with $1.2B Leap Purchase

By Jeff Gamet

Jul 15th, 2013 1:45 PM EDT

AT&T is looking buy Leap Wireless in a move to grow its own cell service network even more and add new radio frequencies to its own spectrum lineup. The deal will add 5 million new customers to AT&T's user base, and also gives AT&T Leap's 700 MHz radio spectrum.

AT&T won't likely see as much resistance this time around since it isn't going after the fourth largest carrier in the country. That said, the idea that Cricket -- the brand Leap operates under for its cell service business -- will become part of AT&T may not sit well with competitors and consumers hoping for more options when shopping for new cell phones.

The news on AT&T's plans to buy Leap follows the completion of Japan's SoftBank buying more than 70 percent of Sprint in a $21.6 billion deal. That deal wrapped up last week, giving Sprint some $5 billion to increase its LTE coverage areas around the U.S. Sprint also completed its acquisition of Clearwire at the same time. T-Mobile also recently bought MetroPCS.

The big four carriers seems to have their sights set on smaller cell service providers, so watch for even more mergers over the next year.